North Bay Real Estate

Why Real Estate Still Wins Long Term

Real estate continues to be one of the strongest wealth-building tools in the U.S.

Nearly two-thirds of household wealth is tied to home equity
Home values have risen in 78 of the last 83 years
Homeowners have ~44x the net worth of renters
According to National Association of Realtors, the median homeowner increased net worth by $150,000 over the last five years. Even in markets that cooled recently (like parts of Florida and Texas), long-term gains remain significant.

Your takeaway: Short-term price noise doesn’t change the long-term wealth story of homeownership.



Inventory & Listing Trends

Data from Realtor.com shows Nationally:

Active listings fell 7% month over month in January
Inventory is still up 10% year over year
New listings jumped 41%, which is typical for January listing activity
Despite the surge in new listings, total inventory fell - meaning homes are still selling, even with higher rates.

We see the same trend in CA, with the increase in new listings in January, active listings did not increase as much.

Your takeaway: Buyer demand is healthier than headlines suggest, especially for well-priced homes.

Labor Market Is Cooling (Rate-Friendly)
Multiple reports this week pointed to a softening job market:
Job openings fell to the lowest level since 2020
January job cuts were the highest for that month since 2009
Hiring plans hit record lows
ADP showed very modest job growth, driven almost entirely by healthcare and education
At the same time, inflation appears closer to the Fed’s target once tariff effects and housing data lags are stripped out.

Why it matters:
A weaker labor market + cooling inflation increases the odds of rate cuts later this year, which supports buyer affordability and activity.

Home Price Outlook

Home prices up ~4.5% over the next 12 months
Momentum is slower, but demand still exceeds supply in many markets
Tighter-inventory areas likely outperform
Your takeaway: This is a more balanced market—not a crash. Buyers gain negotiating power, sellers still benefit from long-term appreciation

Between Foundtaingrove & Hidden Valley 9000sf lot and backs up to open space! 1660sf 3 bedroom/2 bath home with new bamboo flooring, large kitchen with views of the lush backyard. New $20k heat/AC pump system. Unbelievable at $840,000.
Call me for more information!